S.69 Bogus purchases

Supreme Court has dismissed Revenue’s SLP in respect of bogus purchases against Gujarat High Court’s decision –  [2018] 94 taxmann.com 324 (Gujarat), wherein it was held that purchases cannot be treated as bogus if:

    • Purchases supported by bills

    • Payment made by account payee cheques

    • Transaction has been confirmed by the supplier

    • No adverse inference as to sale against said alleged purchases

    • The supplier has accounted for the purchases made by the assessee and paid taxes thereon

    • No evidence to show that the amount was recycled back to the assessee

PCIT v. Tejua Rohitkumar Kapadia [2018] 94 taxmann.com 325 (SC)